The new base rate regime is going to become effective from July 1, 2010, will give more bargaining power in the hands of the old home loan borrowers.

It will happen since it is expected that to meet the requirements of the new base rates, the banks will re-settle their lending rates.

The Reserve Bank has already said that the existing customers should be given a choice between staying with their old loan rates or go for a newer one.

There is also news that the banks both public and private will price their loans 1-2 per cent above the base rate. This will be done so that they remain competitive in the market.

And as per the industry people the customers will enjoy rates in between 9-10 per cent while the existing ones will enjoy somewhere below 1-2 per cent than the bank rates.

And so as to keep the markets competitive, the banks will keep the rates low. Experts believe that the rate will remain between 8-9 per cent.

But even with this, it is not clear whether the actual benefits of the rates will go to the customers or not.